Programs that reward customers for purchases and other behaviors have been around for quite a while. Generally, they have taken the form of loyalty or cashback programs, which are based on transactions.
But as customers are becoming more aware of the value of their data, many brands and third-party programs have been searching for the best way to compensate consumers for sharing their personal data. However, most attempts so far fall short and fail to deliver true value to the customer – or bring the greatest value to the brand.
Reach is creating a new app that gives consumers control over the brands they share data with, compensation for sharing, and opportunities to connect in fun and engaging ways with brands and others that share interests and values.
Rewarding Customers for Sharing Data
As consumers have become increasingly aware of the value of their data, the pressure is on for the brands to provide fair rewards and compensation for data sharing. Not to mention, legislation and regulations like California’s CCPA, EU’s GDPR, and Japan’s PIPA give consumers new rights and make it harder than ever for brands to obtain the data they need to understand their customers, personalize offers and communication, and continually improve products and services.
In response, a number of companies have already started or are piloting strategies to reward customers for allowing access to their data. Amazon has already launched its own Shopper Panel, which gives select customers Amazon credit for sharing personal data. Even back in 2017, Verizon stepped up its rewards game with an upgraded program called Verizon Up, dubbed as “the best loyalty program you may not have heard about” by The Wise Marketer. Verizon Up offers a variety of rewards, including credit for sharing data.
New third-party companies like Killi rise up every day. But these programs are narrowly focused on the quid pro quo of paying consumers for sharing data – none of these programs attempt to engage customers with brands and with each other, and none provides compensation valuable enough to really drive consumer behavior.
Where Most Programs Fall Short
However, these programs fall short of providing true and fair rewards and compensation to their customers and also fail to give brands deep and actionable insight into their customers.
Many programs are “set-and-forget,” automatically compensating customers once they join and opt in to data sharing. While this is easy for consumers, people soon come to take such compensation for granted. By comparison, people appreciate more the “trophy value” of a reward customers have earned, even when the program feels easy and seems effortless to the consumer.
Another problem is, many of the new programs like Kili are focused on their own branded app, when the focus should be on brands consumers love. A program should place sponsoring brands front-and-center, facilitating direct personal engagement. However, none of the new efforts seem to have figured out a value proposition rich enough to motivate consumers and, at the same time, cost-effective for participating brands.
Take Killi for example. They’ve been awarding amounts as small as 25 cents per week for basic data sharing, even less for survey responses. Such trivial rewards fail to motivate consumers.
Killi has tried to remedy this recently by making an abrupt shift from US currency to a points-based system to reward customers with. To be fair, 25 points sounds like a lot more than a quarter. However, the damage was done, and it’s going to take an amount of effort to recover from their previous oversight.
Where Do We Go from Here?
The legislations and consumer resentment aren’t going away – and brands must respond to them promptly and appropriately. Brands need more complete and actionable data-based insights, not less (even as regulations proliferate).
To achieve this, the relationship between consumer and brand must undergo reinvention, in a way that delivers reciprocal benefit. Companies need a financial structure that provides meaningful consumer compensation while giving brands the data they need to compete effectively – at an ROI that makes sense.
Programs need a broader perspective that includes fair economic reward plus the benefits of personalized, curated offers, content and experiences, enabled by actionable data insights. It should also include the benefits of connection between brands and consumers, and between consumers who share the same interests and values.
Such an inclusive view should actually enrich consumers’ lives, both materially and less tangibly, helping folks achieve their goals, whether that goal is owning every Nike shoe or mastering gourmet cooking.
The Reach Difference
Reach is working to address all these needs with a unique new app and marketplace that levels the playing field. The Reach Marketplace empowers consumers to unlock the value of their data and their time. Simultaneously, it provides brands with actionable, compliant data that enables a 360-degree view of the customer, unavailable through existing resources.
Reach members earn Reach Dollars they can spend just like cash with any brand in the app. The more you interact with the brands, (not just purchases, but with customer feedback and other activities as well) the more you earn Reach Dollars.
Reach doesn’t sell or give customer data to anyone – members decide which brands they want to share info with, and the brands compensate you with Reach Dollars – and brands also provide personalized opportunities and experiences that are individually relevant and valuable.
We’re not here just to reward customers. We’re helping brands and consumers build a new relationship based on trust and reciprocal value exchange. Members gain control, compensation and connection. Brands get actionable, real-time insight into customer behavior, and reduce their reliance on costly and inefficient discounts and promotions.
More value for consumers. Enhanced return for brands. It’s all within Reach.
What will you Reach for?
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